The Two Functioning Characteristics Of A Contractual Trust Structure

To provide asset protection and for the estate and
tax planning mechanisms to work best, the contractual
trust structure must have two functioning characteristics:

First, the "Trustee" must be independent. This Trustee cannot
be related by blood, marriage, or employment. The
Trustee must be an arms length party. The Trustee
may hire a Manager and delegates authority but the Trustee
retains responsibility and control and is a fiduciary
that can be held legally responsible for the protection
and defense of the trust and its assets.

Second, an "Exchangor" must actually exchange legal and
equitable ownership and control of the assets to the Private
Contractual Trust. It must actually be funded and begin
operating as a separate entity. Just creating the trust
and delivering the documentation will not accomplish the
goal. The activities of the trust must match what has been
set up under the terms of the contract documents.

The trusts are created with a fixed life, usually of twenty-five
years. They can be renewed but are irrevocable. A
Pure Contractual Trust can buy, sell, borrow, lend, rent, lease
and so forth. The significant changes are not in the activities,
but in ownership.

There are two keys that allow Pure Contractual Trusts to
create the benefits mentioned:

The first key is that the Pure Contractual Trust
can act as an individual legal entity. It is
separate and equivalent to a natural or real person
and can perform accordingly.

The second key is the jurisdiction of the trust.
Jurisdiction is essentially the area of law in which a
case is placed, to know what legal rules apply for deciding
a case one way or another, such as a criminal case as
opposed to a civil case. Pure Contractual Trusts are formed
outside of the jurisdiction in which statutory codes are effective.

The goal is not to own things, but to have complete
control and use of them at will. By the way,
you legally pay very little of no taxes with this method.